By: Randall Cook, Employee Benefits & Executive Compensation Attorney
On November 6, 2019, the IRS announced the annual cost-of-living dollar adjustments applicable to retirement plans beginning January 1, 2020. The full list of adjustments is contained in IRS Notice 2019-59. Here are some highlights:
| 2020 | 2019 | |
| 401(k)/403(b) Elective Deferral Limit |
$19,500 | $19,000 |
| Defined Contribution Plan Annual Limit |
$57,000 | $56,000 |
| Defined Benefit Plan Annual Limit |
$230,000 | $225,000 |
| Annual Compensation Limit | $285,000 | $280,000 |
| 401(k)/403(b) Catch-Up Contribution Limit |
$6,500 | $6,000 |
| Highly Compensated Employee Compensation Threshold |
$130,000 | $125,000 |
| SIMPLE IRA Elective Deferral Limit | $13,500 | $13,000 |
| SIMPLE IRA Catch-Up Contribution Limit (Unchanged) | $3,000 | $3,000 |
|
Social Security Wage Base |
$137,700 |
$132,900 |
For more information on retirement plan issues, please contact a member of our Employee Benefits & Executive Compensation team.
Randy Cook is a partner in the Employee Benefits & Executive Compensation practice group. The information in this article is not intended to provide legal advice. For professional consultation, please contact Randy Cook at Saalfeld Griggs PC. 503.399.1070. rcook@sglaw.com © 2019 Saalfeld Griggs PC
